Samdrup Jongkhar business community seeks govt. intervention

PMO has directed the Thromde to compile a report on the prevailing market crisis to give the government idea on how best to intervene

The business
community in Samdrup Jongkhar has submitted a comprehensive report on the
deteriorating market condition in the border town to the Prime Minister’s
Office (PMO) this week.

This submission was made after
the PMO directed the Samdrup Jongkhar Thromde Administration to compile a
report on the prevailing market crisis, which will give the government a fair
idea on how best to intervene.

In fact it came just two days
after the Thromde Administration conducted an emergency meeting with the
regional heads of the government and the business community, to collectively
discuss changing some of the existing policies to make business environment in
the border town conducive.

With the commissioning of
Nganglam-Gyalposhing highway earlier this year, businesses in the border town
have come to a screeching halt. The new road has diverted travelers away from
this historic transit town.

“Concerned members of the
business community approached me, requesting for an emergency meeting on the
matter,” said Thrompon Karma Sherab, in his opening statement, “I am equally
concerned, and will do everything in my capacity to help.”

Taxi drivers lost their
business overnight, when travelers took to the new highway, and so did the
hoteliers and restaurateurs, whose main customers were mostly shoppers and
travelers from the north.

With the streets mostly empty
even during the peak business season, it’s not just the service industry that
has been hit hard, wholesalers, retailers and other business owners alike have
all been affected by the current dry spell. Owing to this, many are mulling
over closing down their businesses, particularly the hotels with its high
overhead costs.

But being a border town, it can
always fall back on the Indian clients, given its proximity to the seven North
Eastern States of India, making regional tourism highly feasible in Samdrup
Jongkhar.

As an answer to the current
crisis, a local businessman proposed the immediate revival of the special
permit, earlier issued to the regional tourists travelling beyond the
municipality area, but discontinued abruptly a few years ago.

“The market will bounce back on
its feet, if some of the unfavorable policies are changed,” said Karma Chuki, a
member of the Hotel and Restaurant Association of Bhutan – SJ.

“Like earlier we will take
their risk by signing an undertaking with the immigration office,” he said,
“The government should really start treating Samdrup Jongkhar and Deothang as
one thromde.”

While Indian visitors get
access to the border throm, they are restricted from travelling beyond the four
kilometer radius of the municipality area, depriving Deothang, which is located
just18kms uphill, the benefit of being a border town.

“One day permit should be
issued to the walk-in Indian tourists, who wish to explore Deothang throm for
sightseeing,” states their submission to the PMO, emphasizing mostly on guided
tours. On its part the government can fix a ceiling on the number of regional
tourists entering, and travelling beyond the municipality area in a year.

“This way, visitors can be monitored properly,
and any security concern the government has can be put to rest,” their
submission further states.

This short trip can be facilitated by local
taxi drivers, or hoteliers, who will ensure their safe and timely return.
Gradually, the business community hopes the government would create a permanent
entry point for regional tourists from Samdrup Jongkhar, akin to the one in
Phuentsholing.

While discussing the problems
with the regional heads of government agencies, it was found that they have no
authority over policy matters, be it allowing special permit for Indian
tourist, setting up a permanent entry point for them.

The Regional Director of
immigration clarified that the regulation was put in place for security reasons,
but if it is relaxed by the higher authorities, his office is in a position to
facilitate regional tourist’s entry from Samdrup Jongkhar. With adequate
manpower and infrastructure at his disposal, he is confident his office will be
able to handle the increased traffic.

The Secretary General of Bhutan
Chambers of Commerce and Industries, Ugyen Chophel, highlighted the present
emergency, where business houses were struggling to stay afloat.

“BCCI will render every
possible help to revive the market,” he said, adding, he will write to his
superiors about the market scenario.

Meanwhile, the members of the
business community also questioned why there are two sets of policy in place,
one for Samdrup Jongkhar and Gelephu, and the other for Phuentsholing.

“While one town prospers, the
other two are pushed to the edge,” said another member of the community, “This
is discrimination if you think properly and represents the spirit of balanced
regional development in a very bad light.”

Further, exemption on the monthly
sales tax for low budget hotels was also proposed, citing the current market
economy makes it absolutely challenging for the hoteliers to pay their taxes.

However, the Regional Director
of Revenue and Customs explained they can only give concessions on late
penalties, but for tax exemption, the hoteliers must appeal to higher
authorities.

Initially, it was decided that
a delegation would be formed by the business community, who would approach the
PMO, with the petition to amend some of the existing policies, in order to
improve the ease of doing business in Samdrup Jongkhar.

“But when PMO responded
promptly through the Thromde Administration, we decided to wait,” said a member
of the business community, hopeful their predicament would be addressed at the
earliest.

“Otherwise the market may not survive this time,” states their submission to the PMO.